Mr Batchelor, who was New Zealand's most decorated surviving World War 2 veteran, died last Saturday, aged 89.
He served in North Africa and Italy and was awarded the Distinguished Conduct Medal and bar.
The full military service, which included a 1.5km procession to the Waimate Lawn Cemetery, with Mr Batchelor's casket borne on a gun carriage, will be remembered in the small town for many years to come.
The Waimate High School hall was packed with mourners, and seats were also provided outside the hall for the service which was led by Army Chaplain Leon O'Flynn.
The casket was borne through the hall on the shoulders of army personnel, with Mr Batchelor's medals carried on a cushion.
During the service, Mr Batchelor was remembered not only as a war hero, but also as a much-loved husband of 62 years to Thurza, father to Craig and Gisella, and grandfather.
Waimate Mayor John Coles said Mr Batchelor's life would long be remembered not only by his family "but us all" and would be etched in the history of New Zealand and, especially, of the local community.
The casket was piped out of the hall and placed on the gun carriage, draped with the New Zealand flag, and then, to the beat of a drum, the procession made its way slowly to the cemetery, where the flag was at half-mast.
People looked out windows or stood quietly in their front yards, or on the street, to pay their respects, as the procession passed.
Among the mourners was former Veterans' Affairs Minister Rick Barker, who met Mr Batchelor on two occasions and was particularly struck by his humility.
"He was a very humble man," Mr Barker, a Labour list MP, said.
At the cemetery, a volley of shots was fired and the Last Post played, as Mr Batchelor was laid to rest in the RSA section.
An obituary will be published on Saturday.
